The logistics process seems very logical. And perhaps it is. People sit behind a screen and order what they want. The only thing left to do is for someone to send a package with the right products. Done.
But if you take a look at what goes on behind the scenes, you'll see that there's a lot more to it than that.
To ensure that you work efficiently when you start your online store, we will briefly review the most important elements of a streamlined order fulfillment process below.
Inbound
The logistics process starts with the "inbound." That is the moment when your supplier or manufacturer delivers the products to you.
If something goes wrong here, it disrupts the rest of the logistics chain. That is why it is important that all incoming deliveries are thoroughly checked, both in terms of quality and quantity. You don't want to just assume that everything is correct and blindly put all products on the warehouse shelves. No.
Because if your customer assumes she will be lying on the beach in her new bikini this weekend, but on Friday she receives the wrong size (due to incorrect labeling) or nothing at all (due to incorrect stock levels), she probably won't find it funny.
And if you don't pull out all the stops to compensate her in some way, there's a good chance she'll order from another online store next time.
Effective inventory management therefore starts with inbound. Another important factor here is that you "train" your manufacturers or suppliers to deliver goods in as structured a manner as possible.
It takes less time (and therefore money) to unload a pallet with neatly labeled and separated products than one where everything is jumbled together without labels.
If we go back to the example of the woman who ordered her bikini, you can see that it boils down to knowing exactly how long it takes to bring your stock levels up to the required level.
When your customer, card reader in hand, sees the message "out of stock," they will likely surf to a competitor and complete their order there.
Effective inventory management takes place between receiving the goods (inbound) and actually shipping them to your end customer (outbound).
Efficient warehousing
A company is really nothing more than a collection of systems, processes, and procedures. If you run a web shop, one of the most important systems is the one you use to manage your stock.
A good inventory management system ensures that:
- Fast-moving products should be stored in an ideal warehouse location. Goods that need to be ordered and shipped frequently should not be tucked away at the back of your warehouse on the top shelf. Instead, they should be stored close to the packing table.
- You are notified in good time when stock levels of a particular product are low. This is important because it alerts you when you need to reorder everything from your supplier or manufacturer—so you don't lose customers to the competition.
- Products with limited shelf life are managed based on FIFO, FEFO*, or another principle.
(*FEFO: First Expired, First Out. For food products, certain products that arrive at the warehouse later may still need to be shipped earlier because their expiration date is closer to today.)
Outbound
After inbound and efficient inventory management, proper order processing is important. The outbound process starts when a customer places an order in your online store.
From that moment on, it is important that the order is processed quickly and correctly. The order must contain the correct products. Because if there are returns due to an error in the picking process, you can probably say goodbye to (part of) your profit margin for that order.
In addition, you need to pay sufficient attention to how everything is packaged. Not only do you need to choose the right shipping box (to avoid waste and overly expensive shipping costs), but you also need to consider how best to fill the boxes. This is important if you want your products to arrive at your customer in optimal condition.
The Last Mile
For the "last mile," you can collaborate with various couriers. These include DPD, PostNL, Bpost, GLS, TNT, UPS, etc.
Each of these couriers has its own characteristics and formulas. The price varies depending on the services you want. (Think of time slot deliveries, evening deliveries, with or without signature upon receipt, customs shipments outside the EU, etc.)
Tip: Offer multiple shipping options in your online store. We are convinced that it adds value when the end customer can choose who delivers, where, and when. The logistics process must therefore be tailored to this.
Today, customers want to be delivered by GLS if they are at home during the day. If they want an evening delivery, they may be more likely to choose PostNL, and if they prefer to pick up their parcels themselves at the post office, they will choose Bpost.
Conclusion
If you want to offer your customers continuity and low error rates, it is best to invest in advanced, automated warehousing systems. This is the only way to ensure that your online store business grows in a sustainable manner – with efficient e-fulfillment.
Are you looking for a partner to help you manage your logistics process?